Consumer interest in telematics up


Value proposition for OEMs strong for services that need vehicle connection

Overall consumer interest for in-vehicle telematics services has rebounded after levelling off in 2014, a new study shows. In particular, interest remains robust for services that provide immediate help in time sensitive emergency situations, such as remotely unlocking a vehicle or stolen vehicle assistance.

Respondents from the US and China, premium vehicle owners, and younger age groups were found to show interest in slightly greater numbers , according to the report from the In-Vehicle UX (IVX) group at Strategy Analytics. Overall however, strong interest in telematics was found across all regions and demographics.

Strategy Analytics surveyed consumers in the US, Western Europe, and China regarding their interest in telematics and remote vehicle management services such as stolen vehicle assistance, remote diagnostics, and teen driving alerts. Interest in most telematics services has increased sharply since 2014 and was found to be highest among premium vehicle owners for many services.

Age group differences were mixed, but interest in many services showed a slight downward trend as age increased. Although consumer interest in teen driving alerts was modest, it was lower than interest in all other telematics services evaluated, especially in the US and Europe.

Derek Viita, senior analyst and report author at Strategy Analytics, commented: “Interestingly, consumer willingness to pay a monthly fee for a package with all of the telematics services described in this survey was quite high, especially at price points below $20 in the US and €6 in Western Europe. Strong value was placed on services which provide the perception of increased safety and security; the high percentage of consumers willing to pay for these remote vehicle management services reflects this tendency.”

Continued Viita: “Unfortunately, with the proliferation of the smartphone, many consumers already have (and pay for) access to many services similar to those included in this survey. As such, OEMs often struggle to retain consumers in subscription-based telematics and remote vehicle management services.”

Chris Schreiner, director at IVX group at Strategy Analytics, added: “Despite this issue, [we have]proved that consumer interest in telematics services is present in a big way. The value proposition for OEMs is especially strong for services which can only be provided via a vehicle connection, such as tracking a stolen vehicle, or remote diagnostic services.”


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